March 2017

South Dakota VOLUME CII, NO. 3

HURON, SD

MARCH 2017

UNION FARMER A PUBLICATION OF SOUTH DAKOTA FARMERS UNION

Doug Sombke Named Chair of Farmers Union Enterprise Board

Members Lobby for COOL

State Advisory Meeting

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A Voice for Agriculture in Pierre

S.D. Farmers Union Celebrates the Lee Farm Family from De Smet

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ost mornings, Caroline Hansen is up early and feeding cattle on her family’s Turton farm.

On Feb. 6, the fourth-generation farmer left feeding to her brother, dad and uncle, hopped into her GMC pickup and by 6:30 a.m. was on

Legislative Day Continued on Page 9

It’s Scholarship Season!

Get Money for College!

Turn to page 12 to learn about scholarships available for new and returning college and technical students.

South Dakota Farmers Union has served South Dakota farm and ranch families for more than a century. Throughout the year, we share their stories in order to highlight the families who make up our state’s No. 1 industry and help feed the world. This month, we celebrate the Lee farm family who raise crops and cattle near De Smet. Pictured here: Kaitlyn, Landon, Roger, Rob and Mary.

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arming brings the Lee family joy. Enjoying the work and time together on the land is essential for this De Smet farm family.

“We have told our kids this for years, as long as we can farm and have fun with it, we will continue to do it,” explains Roger Lee, 62, who farms with his wife, Mary, and their three grown children, Rob, Landon and Amanda.

Forty years ago, fun would hardly be the term an outsider would use to describe the beginning of Roger’s farming career.

Lee Family Continued on Page 2

UNION FARMER Lee Family Continued from Page 1

Amanda (Lee) McMillan her husband, Jesse, with their two sons, Jackson, 3, and Thomas, 1.

Only a few years into farming fulltime, his dad, Ephriam, passed away, leaving Roger, at 21 to milk the family’s dairy herd and farm with his mom, Dorothy. It was 1976. A year later a drought and lack of feed forced him to sell their dairy herd.

Roger’s affection for farming kept him going, even when interest rates reached 23 percent.

“I always knew I wanted to farm. I liked farming. It wasn’t the money-making part of it, I just knew I wanted to be on the farm. If I didn’t like it, I would have been gone,” says the third-generation farmer, who instead of heading off to college after high school, bought his first half section of land from his parents.

Rob Lee snuggles his newborn son, Everett, while combining corn harvest 2015.

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Rob Lee with his wife, Darcie, and their son, Everett.

At 18, he bought his second half section from a neighbor. “(At the time) I was the youngest FHA (Farmers Home Administration) real estate borrower in Kingsbury County,” Roger says. “Dad had to sign a form saying I could use his barn and equipment. Dad and Mom were always fair to me.”

With farm income nil, Roger and his wife, Mary, were able to keep up with land payments by working off the farm. Mary worked in town and in the early years, Roger worked on construction crews and as an auctioneer. Nights and weekends, the couple “sang for their supper” so to speak. Roger was the lead singer and he and Mary were both musicians in the Good Times Rodeo Band.

“We had fun and it paid the groceries,” says Mary of playing in the band where she was first introduced to Roger. “We played bars, anniversaries and weddings – we still get together and play.”

“Now, they’ve graduated to playing old folks homes,” jokes Rob. Laughter erupts from the family, who took the morning off from work to visit about their farm. They are sitting around the island in Roger and Mary’s kitchen. As Roger pours another round of coffee, he smiles and says he has a lot to be grateful for. Both of their sons and their families live within 10 miles of the farm. Their daughter, Amanda, and her family live in Dell Rapids.

“Not too many have it as good as I do and I realize that,” Roger says. “I appreciate having my family this close.”

Roger’s focus returns to the farm. He explains that over time, he and Mary were

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able to pay off loans and slowly expand their farm acres.

“I am very goal-oriented,” Roger says. “I have always had a plan and that was to make things better and for things to get better eventually.”

His perseverance doesn’t surprise his daughter, Amanda McMillan. “The farm is part of my dad. The two cannot be separated,” she explains.

Overtime, things did even out. Roger continued to expand the crop acres and in 2005, upon the urging of his then-14-year-old son, Landon, the family reintroduced cattle to the farmstead. This time, they were beef cows.

Today, the family farms nearly 1,300 acres, which is still not quite large enough to sustain the families who care for it. So, the Lees continue to maintain off-farm careers. Roger works as a crop insurance adjuster, Mary works as a nurse at Good Samaritan in De Smet. Rob, 30, is an agronomist and works as

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a crop insurance adjuster, his wife, Darcie, works as a labor and delivery nurse for Huron Regional Medical Center. Landon, 26, is a diesel mechanic. He and his wife, Kaitlyn, operate their own diesel repair shop, Truck & Ag Repair.

Rob and Darcie have an 18-month-old

Landon Lee feeds.

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son, Everett. Landon and Kaitlyn are farmers on how to make it work on their expecting their first child in August. farm, but then, I had the benefit of actually Their sister, Amanda, is a nurse being able to put what I talked about into practitioner at Flandreau Tribal Clinic. She and practice.” her husband, Jesse, have two sons, Jackson, Today, Roger and Landon leave the input 3, and Thomas, 1. Amanda continues to have Lee Family Continued on Page 14 an interest in the farm.

Like Roger, his sons both grew up knowing they would not leave the family farm behind.

“We have quite a triangle working here on the farm.

Dad is the brains of the operation. I am an agronomist and Along with farming and working Landon is a as an insurance adjuster, Roger mechanic,” Rob Lee has spent a long career in public service, first as a S.D. explains. “I always legislator serving District 6 and felt that when I today as a Kingsbury County worked as an Commissioner.

When he and his sons have free agronomist, I would time, they enjoy refurbishing spend my days Allis-Chalmers farm machinery. coaching other

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S.D. Farmers Union President Elected Chairman of Farmers Union Enterprises

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oug Sombke, President of South Dakota Farmers Union, was recently elected Chairman of Farmers Union Enterprises board of directors.

“I am eager to continue to guide this organization whose goal is to do everything we can to help family farmers and ranchers,” says Sombke, of the organization which oversees Farmers Union Industries.

Farmers Union Industries is made up of several businesses — the dividends of which go to help fund Farmers Union organizations in South Dakota, North Dakota, Minnesota, Montana and Wisconsin as well as Farmers Union Enterprise programs and National Farmers Union.

The diverse business portfolio Farmers Union Enterprises oversees includes; grain-free pet food, wheat-based cat litter, grease and animal rendering plants.

Like the organizations it supports, Farmers Union Industries also focuses on funding policy and advocacy. In 2014, Sombke was among the Farmers Union Enterprise board members who traveled to the Vatican to meet with Pope Francis to discuss the important role family farmers play in food security as well as the fact that most food produced in the U.S. is produced by family farmers.

“It is my goal to not only help family farmers and ranchers in South Dakota and the United States, but to work with families who produce food around the world,” Sombke says. “People cannot

afford food if we put wheels under it all the time. We need to grow it closer to home. Now, that’s not to say export markets aren’t necessary, but in order to create a globally sustainable food supply, more food needs to be produced locally.”

A fourth-generation Conde farmer, today Sombke’s three sons have all returned to the family’s farm where they raise crops and operate other value-added enterprises.

Sombke’s clear understanding of the life and challenges family farmers live and face daily will serve him well in this leadership role, said David Velde, President/CEO of Farmers Union Enterprises.

“You can talk about understanding agriculture, but until you have planted corn, fed cattle and gone through up and down market cycles, you cannot appreciate how stressful and important each decision made is to a family’s farming operation,” Velde says.

“Doug understands agriculture because he is a farmer. He lives it.”

As President of S.D. Farmers Union, Sombke has served on the Farmers Union Enterprise board since 2005. He is filling the seat of Doug Peterson, the recently retired Minnesota Farmers Union President. The board is made up of presidents from each of the fivestate Farmers Union organizations.

“I have big shoes to fill, but I’ve been well prepared,” Sombke says. “Serving as President of South Dakota Farmers Union and Chairman of the board for Famers Union Enterprises work well together – in both roles, my focus is on serving family farmers and ranchers.”

115th Anniversary Convention March 5-8, 2017 San Diego, CA www.nfu.org/convention 4

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REAL Exposes Rural Professionals to Legislative Process & Media Training

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s an SDSU Extension 4-H Youth Program Adviser Kaycee Jones works daily to provide leadership training and guidance to youth and volunteers. When it comes to her own leadership development, she sets aside time to participate in classes or programs, like the recent South Dakota Farmers Union REAL program she attended in Pierre Feb. 6-7.

“Anytime you can better your own leadership skills, then you can be better at what you do and better serve those around you,” explains Jones, who lives in Midland and works with 4-H youth in Haakon County.

Investing in the leadership skills of rural professionals is the mission of the REAL (Rural Economic and Leadership) program. Developed by S.D. Farmers Union, each year rural professionals are invited to participate in three sessions which explore everything from leadership styles, communication skills and effective meeting facilitation to making media work for you, understanding policy and parliamentary procedure.

“The goal of this education program is to start with the basics and build with each session,” says Rachel Haigh-Blume, S.D. Farmers Union Education Director.

Better understanding the policy process and how to work with media were the focus of the second 2017 REAL session held in Pierre during the legislative session.

“Anytime you can get a better understanding of how government works, make connections and gain resources, you can better your community,” says Trevor Cramer, Economic Development Director for Faulkton Area Economic Development Corporation.

Expanding his knowledge and leadership skills were two reasons Cramer says he signed up for REAL. “In small communities we wear so many hats – and end up being the leader of many different things. It was important to me to make time for this,” Cramer says.

Cramer and Jones were among rural professionals from across the state to participate in the 2017 REAL Class. Networking with other rural professionals is an added perk to participating in the class, explains speaker, John Beranek.

“Here young professionals have an opportunity to spend time with other catalysts who are doing good work in rural communities. They can actively beg, borrow and steal great, tested ideas,” says Beranek, who is a Consultant and Professional Coach with Intersection Consulting.

Engaging the media and developing effective messaging was the focus of the workshop Beranek led. “I don’t care what industry you are in, at some point you will want to celebrate customers you are serving or the good work an organization in your community is doing.

It is foolish to think the media will automatically show up and do this

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Some of the REAL class members posed for a photo on the Capitol steps. Front Row (left to right): Trevor Cramer, Faulkton; Kaycee Jones, Midland; Leslie Ford, Mellette; Lisa Sall, Wessington Springs; Kathy Chase, Wolsey, and Rachel Haigh-Blume, S.D. Farmers Union Education Director. Back Row (left to right): Jared Hybertson, Centerville; Lynette Marzolf, Redfield; Hilary Rossow, Brookings; Falyn Hogg, Faulkton; Jane Amiotte, Rapid City, and Laura Petersen, Gregory.

without you working to make them aware,” Beranek explains.

His workshop also focused on how to tell a good story. “We help participants think of how to tell their own story,” Beranek says.

He explains that many are not naturally good story-tellers – which is the reason learning to convey your message in a way that is interesting to others is so important. “You cannot really share the passion and emotion and the purpose that lives in what you do, unless you’re a good story-teller,” Beranek says.

Following the media workshop, REAL class members had an opportunity to practice what they learned through interviews with Jody Heemstra, Public Affairs Manager with S.D. Deptartment of Agriculture.

In addition to the media workshop, REAL class members met with Joy Smolnisky, Executive Director with the S.D. Budget and Policy Project; discussed social media use with Malcolm Chapman, toured the Capitol, sat in on a House and Senate session and met with Hunter Roberts, Policy Adviser to Governor Dennis Daugaard.

“Rural communities succeed because of those who step up and serve in leadership roles. Farmers Union is committed to supporting those leaders,” says Doug Sombke, S.D. Farmers Union President.

To learn more about REAL and other educational opportunities offered by S.D. Farmers Union, visit www.sdfu.org.

Presentor John Beranek leads a REAL workshop focused on engaging the media and developing effective messaging.

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Lake Area Technical Institute Joins S.D. Farmers Union for College Conference on Cooperatives

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midst a fulltime job and school schedule, Lori Drietz made time to attend the College Conference on Cooperatives in Minneapolis.

“This conference opened my eyes to a lot of different perspectives on what cooperatives are and how they are used,” says Drietz, who works as a grain procurement representative for Valero Energy in Aurora and is pursuing an online commodity marketing degree from Lake Area Technical Institute.

Hosted by National Farmers Union, the four-day seminar is designed to do just that.

“Cooperatives play an important role in strengthening rural and urban economies and communities across the country. College Conference on Cooperatives engages tomorrow’s agricultural leaders in applying cooperative business principles and learning about the opportunities available through the cooperative model,” says National Farmers Union President Roger Johnson.

Lake Area Technical Institute students attended the College Conference on Cooperatives and were Throughout the conference, students sponsored by South Dakota Farmers Union. toured a number of cooperatives and heard Agricultural Instructor at Lake Area Technical from representatives from traditional and pursing degrees in commodity merchandizing Institute, makes College Conference on and precision agriculture. value-added agricultural cooperatives, housing Teal and Drietz were among a large group Cooperatives a part of his syllabus each year. and worker-owned co-ops and consumer “Most of these students will either work of Lake Area Technical Institute students who cooperatives such as grocery co-ops. for a co-op or will be a member of a co-op. It attended the College Conference on They also gained insight into cooperative is important that they understand how Cooperatives and were sponsored by South development, as well as the challenges facing cooperatives work,” Brennan says.

Dakota Farmers Union. the industry from current cooperative leaders, In addition to visiting several area “Cooperative education is a focus of farmers and members. cooperatives, South Dakota Farmers Union educational they also toured the Mill City “This conference helped me understand programming,” explains Rachel Haigh-Blume, Museum, a river-front museum built into the the role I will play as an agriculture producer S.D. Farmers Union Educational Director. “We ruins of what was once the world’s largest and how active involvement in a cooperative believe it is important students truly flour mill. can benefit me,” says Trevor Teal, a student understand and grasp how diverse To learn more about South Dakota who plans on returning to his family’s Farmers Union educational programming, cooperatives can be.”

Brookings farm following graduation from visit www.sdfu.org.

These are the reasons John Brennan, Lake Area Technical Institute where he is

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UNION FARMER Cooperative Highlight: CBH Evolving to Meet a Changing Industry

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volving to meet their customers’ needs, CBH Cooperative launched CBH Feed and Ag Services in Belle Fourche.

The business, which was part of an acquisition two years ago, has expanded to include a new fertilizer plant and now offers custom spraying and application.

“At the end of the day, the direction the cooperative takes needs to be a win-win for our stockholders,” explains CBH General Manager Jeff Dragseth. “As an employee group, we are in this to enhance the products and services we provide to our

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member/owners.”

Reinvesting in the agricultural communities they serve tops the list of priorities for the CBH leadership team.

Their more urban enterprises — convenience and travel centers — are a big help in accomplishing this goal.

“Profitability of the nontraditional ag business has allowed us to reinvest by developing needed infrastructure to serve more remote areas,” Dragseth says. “I also believe that a large part of accomplishing this is reinvestment in our employee team.”

“THE COOPERATIVE LANDSCAPE IS CHANGING AND CHANGING DRAMATICALLY. WE ARE IN AN ENVIRONMENT WHERE YOU NEED SIZE AND SCALE MORE TODAY THAN EVER.” — Jeff Dragseth

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For the Long Term As he evaluates how CBH will move ahead in the coming years, Dragseth says cooperatives today cannot rely on what has worked for them in the past. “The cooperative landscape is changing and changing dramatically. We are in an environment where you need size and scale more today than ever,” he explains.

To learn more about CBH Cooperative, visit www.cbhcoop.com.

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UNION FARMER It’s Time for EPA to be Reined In

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n this election year we hear a lot about rights and freedom, and justifiably so.

Column by As it relates to the Dale V. Christensen, work of the federal board member of Glacial Lakes Corn government, one Processors, aspect of freedom Watertown available to us is the freedom of information, but sometimes we are not going to like what we learn.

Such is the case with a recent Freedom of Information request from the Urban Air Initiative to the Environmental Protection Agency (EPA), an arm of the federal government arguably out of control, out of touch and out of excuses for its behavior.

For the ethanol industry, a group of unelected bureaucrats in Washington and technocrats in Michigan are deciding the fate of our industry by cozying up to oil companies that work regularly to suppress us. This is beyond a case of the fox guarding the henhouse.

But before I explain, it is important to recognize this is no isolated incident and EPA has either through ignorance, at best, or malice, at worst, failed to make our continued transition to cleaner, renewable fuels an easier path. Recall the nearly decade-old problem with setting the volume obligations under the renewable fuel standard. By dragging out the process, they created uncertainty that stymied the development of infrastructure and advanced biofuels which then allowed them to claim there was insufficient infrastructure and advanced biofuels to meet statutory targets.

Or more recently the crippling restriction they put on ethanol blends beyond 10 percent. Hiding behind a narrow interpretation of the law they shrug their shoulders and say sorry, I can't help you, the law says the vapor pressure (rvp) allowance is only for fuels containing 10 percent ethanol.

They have no answer when we point out E15 and higher blends contain 10 percent ethanol.

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Moreover, the basis for the rvp restriction to begin with is concern over evaporative emissions from higher vapor pressure but after 10 percent volume, rvp begins to go down!

Speaking of higher blends, they asked for comments on certifying automobiles on E30 in the Tier 3 rulemaking last year only to ignore comments many in our industry provided. When we provide solid, scientific information on how such a fuel can reduce air toxics by replacing the carcinogenic components in gasoline used to increase octane, they ignore it. When we remind them they are required under the law to reduce these toxic components, they ignore it. When we remind them they are required to update ethanol's lifecycle emissions analysis which they have not done since 2010, they ignore it.

But back to the startling revelations from the Freedom of Information Act (FOIA) requests. Through an FOIA request submitted by the law firm of former Counsel to President George Bush Boyden Gray, it was discovered that EPA relied heavily on oil industry employees to design the test fuels in a largescale fuel effects study known as the EPAct study. Emails between EPA and the oil industry show that EPA asked oil industry employees what test fuels they would “prefer to see tested” and then revised the test fuels in response to their input.

EPA also threw out three test fuels after preliminary results showed that ethanol lowered emissions of nitrogen oxides and other pollutants and otherwise altered its slate of test fuels to emphasize ethanol effects. The revelation of collusion between Chevron, BP and EPA is important because EPA used the results of the EPAct study to update its vehicular emissions model, MOVES2014. As a result of the oil industry’s influence, the model reports that ethanol increases emissions of many pollutants, even though other studies have demonstrated the opposite.

Could any reasonable person see this is a fair and impartial test of ethanol's emissions

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effects? Letting oil companies who have vowed to repeal the RFS grade the test papers, and worse, have the answers to the test beforehand?

Another FOIA request from the same law firm reveal the agency has ignored or even suppressed health effects data that links aromatics in gasoline to a range of health threats. The first draft of a study from the Harvard School of Public Health on the health effects of aromatics, which are the toxic compounds used for octane, was watered down significantly in the final draft. Based on the email exchanges we have seen it is quite likely the downplaying was due to the addition of an EPA researcher and co-author to the project.

A final act of salt in the wound concerns the attempt — and you can't make this stuff up — of EPA employees to patent a high octane blend of ethanol. EPA employees actually filed a patent application for a high octane blend of fuel and in the application identified E30 as the preferred blend that would "outperform gasoline on a per gallon performance basis." Given that position as far back as 2008, wouldn't it be the duty of the EPA to do everything in their power to help bring that fuel to market? They are on record as saying they will consider the role of octane in fuels after 2025. Why wait?

Finally, EPA had the ability to support the continued development of Flex Fuel Vehicles but have ensured that by phasing out credits, the program is of little value to automakers.

With diminishing numbers of FFVs and these artificial barriers to higher blends, we will remain subject to a mandate that we use petroleum. How is that protecting public health?

It’s time for EPA to be reined in and held accountable for these and too many other questionable actions. All we want is a fair assessment of our product and if given that, we can compete in the market and help further our economy, environment and energy security.

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UNION FARMER Legislative Day Continued from Page 1 the road to Pierre to participate in the 2017 Farmers Union Legislative Day. Hansen joined with more than 40 rural South Dakotans to learn about the legislative session and advocate for our state’s No. 1 industry of agriculture.

“It’s a good excuse to get off the farm … and share our story,” explains Hansen, 25, who spent time in her early 20s as a Senate Intern.

“There are organizations out here all the time who are telling our story for us – and they are not necessarily helping our cause. When farmers show up to share their story, first-hand, it gives legislators an opportunity to hear the true story, straight from farmers.”

Sharing family farmers’ stories is something Hansen believes S.D. Farmers Union does well. It’s what motivated her to become a member four years ago.

“Instead of being on the defensive, it seems that SDFU President Doug Sombke (right), visits with Ryan Brunner, Commissioner of Farmers Union is out in front School and Public Lands. with a positive message,” said Hansen, who together with her dad, brother and uncle, runs a registered Charolais and Simmental cow/calf herd and raises small grains. “One person may not be credible, but when members from a large organization like Farmers Union come together, it helps get our message out.”

Her thoughts were echoed

by Minnehaha County farmer Paul Hotchkiss. “Farmers need to be united in their causes,” says Hotchkiss, who in previous Minority Leader Billie Sutton leads years has made the trek to Pierre discussion during the Democratic to show his support for ethanol. Caucus.

Hotchkiss’ and Hansen’s comments reflect the mission of Farmers Union’s time in Pierre, explains Matt Sibley, S.D. Farmers Union Legislative Specialist. “We work year-round to ensure that the grassroots policy developed by our members is positively represented in Pierre.”

Sibley adds that when members turn out for Legislative Day, it helps him in his lobbying efforts. “Words only carry so much weight.

When legislators see the members make time and travel to Pierre, it shows the strength of our organization,” Sibley says.

“Legislators are good at math,” adds Doug Sombke, S.D. Farmers Union President. “This day is very important because there are Wilmot farmer Orrie Swayze visits with many bills legislators are Jamie Smith, a legislator from Sioux Falls.

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Turton farmer, Caroline Hansen, 25, says farmers need to share their story with legislators. "There are organizations out here all the time who are telling our story for us — and they are not necessarily helping our cause."

deciding on this session which are important to our members.”

Sombke likes to reference Legislative Day as a “mini D.C. Fly-In.” “This is where we all see our legislators in action and have a better understanding of how we can become more involved in the process.”

One S.D. Farmers Union member who decided to take his interest in South Dakota politics to the next level this year, is Oren Lesmeister. A farmer/rancher from Parade, Lesmeister was recently elected to serve as District 28A Representative. The 2017 session is his first.

“I have enjoyed participating in our state government – reading the bills and listening to what the people I serve want,” explains Paul Hotchkiss, a Lesmeister, who serves Dewey, Corson and Minnehaha County farmer Ziebach counties.

In September, Lesmeister and his wife, Tracy, traveled with the South Dakota delegation to participate in the D.C. Fly-In. “I appreciate the fact that Farmers Union doesn’t just talk about farm and ranch issues,” Lesmeister says. “We discuss and represent local, state and national issues – just like what I am doing in Pierre during the session.”

This focus is no surprise to Dallis Basel.

“Legislation is part of the Farmers Union triangle,” says the Union Center rancher and District 5 board member.

Networking with legislators, Basel says is possibly one of the most important missions of Brothers Don and David (right) Mendel farmed the day. “Our members together near Doland. Today, they pitch in can talk to legislators when Don's sons need help on the farm. about their concerns so that the legislators can take these comments into their committee meetings,” he explains.

Legislators appreciate this opportunity, explains Jamie Smith, a freshman representative from Sioux Falls. “I’m a city kid,” Smith says.

“I need to talk to farmers and ranchers to find out how the decisions we make here will impact them. When I get to visit with people of different backgrounds, it helps me think about things in a different

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Legislative Day Continued on Page 13 MARCH 2017

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UNION FARMER Around the State With Farmers Union Read on to learn how South Dakota Farmers Union members and staff are making a difference in rural communities across South Dakota.

Watertown Farm Show

Black Hills Stock Show

Precision Ag Day

Wessington Springs Farm Show

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S.D. Farmers Union Members Lobbied for Senate Bill 135 for COOL in South Dakota

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early a dozen S.D. Farmers Union members and their families turned out to testify for country-of-origin labeling during a Senate Committee hearing Feb. 15.

“Legislators needed to see support from the grassroots level,” says David Reis, who ranches with his wife, Brenda, and their four, grown children near Reliance.

Reis was among a small group of Farmers Union members who raise cattle and made time to testify in favor of Senate Bill 135 (SB 135) along with Matt Sibley, SDFU Legislative Specialist.

be a product of the United States of America,” Sibley explains.

SB 135 passed the Senate State Affairs committee with a 5-to-3 vote. It moved to the Senate floor, but the bill failed in the Senate on a 13-21 vote.

Reliance rancher David Reis testifies in favor of Senate Bill 135. “An organization can have a lobbyist, but the legislators see them every day, so when you have a person show up – taking time from their day-to-day work – that really makes an impression.”

Matt Sibley, SDFU Legislative Specialist, said that even though he is in Pierre every day, it makes a difference when Farmers Union members turn up to testify in Pierre.

SB 135 would require country-of-origin labeling for all beef and ground beef sold for retail within the state – with the exception of prepared foods for immediate sale or ready to eat.

“Basically, any beef verified as originating in the U.S. would bear a label declaring it to “WE HAVE TO SHOW UP. THE WORLD IS RUN BY PEOPLE WHO SHOW UP. SO, SHOW UP. GET YOUR POINT ACROSS. EVERYBODY HAS A DIFFERENT STORY AND PUTS A LITTLE DIFFERENT ANGLE ON IT. YOU NEVER KNOW WHO YOU ARE GOING TO COME ACROSS TO WITH YOUR STORY.” – Joel Keierleber, District 4 board member and a Colome crop and cattle producer

Be In The Know!

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Fourth-generation Gregory cattle producer George Kenzy and his wife, Shelly, brought their children, Brooklynn, 13, Nicholas, 10, and Tyler, 9, to Pierre to show their support for SB 135.

“We are very passionate about COOL, both on a producer-side and from the consumer-side. We raise the highest quality beef in the world. I think that the consumer should be able to show their American pride by buying that product and being able to identify it,” George says.

The Kenzys were highlighted in the February Union Farmer. George and his brother, Brett, have a 300-head cow/calf herd and are permitted to background 3,100-head of cattle. The brothers background their own calves, purchase local cattle to feed and custom background for other producers.

"WE RAISE THE HIGHEST QUALITY BEEF IN THE WORLD. I THINK THAT THE CONSUMER SHOULD BE ABLE TO SHOW THEIR AMERICAN PRIDE BY BUYING THAT PRODUCT AND BEING ABLE TO IDENTIFY IT." – George Kenzy, Gregory cattle producer “As a grassroots organization, having our members testify, attend the committee hearing and visit one-on-one with legislators was very important,” says Doug Sombke, SDFU President.

More Legislative Updates Senate Bill 66: If passed, Senate Bill 66, will classify certain agricultural land as riparian buffer strips. The bill takes necessary steps to support water quality for future generations.

Senate Bill 66 passed the House Committee on Taxation Feb. 16. It will now be debated on the floor.

Former Senator Jim Peterson was vigilant in introducing this legislation in prior years.

South Dakota Farmers Union has always supported this bill.

ADRDL: The debate continues on funding for the Animal Disease Research Diagnostic Laboratory (ADRDL) facility at South Dakota State University in Brookings.

As of Feb. 20, there are three bills up for consideration.

Farmers Union is supportive of the ADRDL facility, however, we stand firm in our opposition of funding coming from increased fees and taxes on producers.

Matt Sibley visits with Farmers Union members Joel Keierleber and George Kenzy about Senate Bill 135.

Subscribe to the Rural Lobbyist and keep up to date with what’s happening in Pierre. Simply tell Matt Sibley, SDFU Legislative Specialist, and he’ll add you to the list – msibley@sdfu.org.

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SDFU

Scholarships

SCHOLARSHIPS 2017 Scholarship

Eligibility

Award

Due

Hubert K & JoAnn Seymour National

Any Farmers Union member or their child

$1,000-$2,000

March 13

CHS High School Scholarship

Must be a High School Senior and attending college fall 2017 in an ag degree

100 $1,000

March 31

NFU Foundation Stanley Moore

Any Farmers Union member or their child

Several $1,000

April 3

FUI Foundation Stanley Moore

Any Farmers Union member or their child, who resides in S.D., N.D., Minn., or Wis.

Several $1,500

April 22

Insuring a Brighter Tomorrow

Any S.D. Farmers Union member, Farmers Union policy holder or participant in SDHSAA

25 $1,000

April 15

TMC Agricultural Graduate School

Any full-time student who pursues a graduate degree in ag related field

$2,500

November 1

Farmers Union Memorial

Any S.D. Farmers Union member or their child

$500

November 17

Farmers Union Leadership

Any S.D. Farmers Union member or their child

$500

November 17

Farmers Union Cooperative

Any S.D. Farmers Union member or their child

$500

November 17

To download applications and for more information, visit www.sdfu.org/education/scholarships or call Rachel Haigh-Blume, SDFU Education Director, at 605-352-6761 ext 125.

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UNION FARMER

WWW.SDFU.ORG

UNION FARMER Cooperative Highlight: Central Farmers Cooperative Welcomes New CEO

M

ark Finck enjoys working with farmers. In fact, direct interaction with cooperative members motivated Finck to leave his role as Chief Financial Officer for an Iowa cooperative to apply for the role of CEO at Central Farmers.

“I have always been a people person and following a merger, I found myself spending a lot of time behind the computer screen,” he says of a short-lived transition from General Manager to CFO. “What I like about serving as CEO is getting to work and interact with farmers and employees.”

Finck’s career history is deeply rooted in the grain elevator and cooperative industry.

Growing up, his dad, Dean, managed a private elevator. So, he was no stranger to the industry when he accepted his first job with a grain elevator in 1984. By 2001 Finck had worked his way up to serve as General Manager/CEO – a role he fully enjoys.

“I like working in an environment where every day, when we walk in the door, we are grateful to come to work. That’s the feeling I get from the employee group here,” says Finck, who sees his role as CEO of Central Farmers one of service to the employee team as well as the cooperative members.

“A good leader will work to help people get ahead – you cannot do it by yourself,” he explains.

At the end of the day, Finck says the work he and the Central Farmers’ team does is much bigger than themselves. They are supporting an industry, “which ultimately works to produce food. Whether it’s feeding livestock or humans, agriculture is an industry we are passionate about.”

More about Central Farmers Central Farmers Cooperative’s legacy is rooted in local South Dakota cooperatives who merged in recent years to provide added value to their members.

A full-service agriculture cooperative, through mergers with cooperatives from the communities of Dimock, Salem, Marion, Freeman, Canova, Montrose, Tyndall, Scotland and Springfield; Central Farmers Cooperative has been able to invest in facility upgrades while maintaining its financial strength.

Its financial strength has allowed the coop to have a 15-year revolver on deferred equity. “We are pretty proud of our equity retirement program,” explains Jim Wahle, President of the Board of Central Farmers Cooperative.

A fifth-generation McCook County farmer, Wahle has been a member of the cooperative since he began farming in 1974.

“We continue to grow as a business. We’ve done a lot of mergers over the years, and continue to grow in order to provide the best service for our patrons.”

Since 1998, the grain and agronomy divisions of Central Farmers Cooperative, Fremar LLC has been connected to ADM. The partnership with ADM has connected the cooperative globally.

Central Farmers Cooperative has locations in Marion, Freeman, Dimock, Canova, Salem, Montrose, Lyons, Viborg, Irene, Scotland, Tyndall and Springfield.

To learn more about Central Farmers Cooperative, visit www.cenfarmcoop.com.

$50,000 to help revive the Farm Link program and a bill to allocate funds to the Animal Disease Research and Diagnostic Laboratory at SDSU. Visiting with legislators about what is important to their family’s farm is one reason brothers, Don, 82, and David, 67, Mendel made the drive to Pierre. “It is important to stay engaged with what is happening politically,” says Don. “Politics effects economics.”

The brothers are third-generation Doland farmers, who have passed the day-to-day

operations on to Don’s sons, Merrit and Miles.

David adds that he appreciates the political refresher course. “It’s important to refresh yourself on the process and get involved from time-to-time on how the process works.”

To learn more about how you can become involved this legislative session, reach out to Matt Sibley, SDFU Legislative Specialist at MSibley@sdfu.org. If you are interested in participating in the 2017 D.C. Fly-In, contact Karla Hofhenke, South Dakota Farmers Union Executive Director, KHofhenke@sdfu.org.

by Lura Roti, for S.D. Farmers Union

Legislative Day Continued from Page 9 way.”

Even though he has a clear understanding of the goings-on of South Dakota farms and ranches, Farmers Union member, Jason Frerichs agrees with Smith. “It shows legislators that farmers care,” says the Wilmot crop and cattle producer and District 1 senator.

Frerichs says that there are several bills being discussed this session which have a direct impact on farmers and ranchers. During Legislative Day, he was focusing on three specifically: Senate Bill 105, which impacts machinery tax; a bill which would allocate

WWW.SDFU.ORG

UNION FARMER

MARCH 2017

13

UNION FARMER Lee Family Continued from Page 3 shed,” Rob says.

He adds that it was this mindset which has kept the farm operational through good times and bad. “In my opinion, there are few things that set this farm up for success – mainly that 30 years ago, Dad’s willingness to drive off the farm and figure out a way to make it work,” Rob says.

Looking ahead, the family doesn’t have immediate plans to expand. They are focused on getting through the current market downturn and, in the meantime, they

Roger Lee with his grandchildren.

decisions to Rob and in turn, the men rely on Landon to keep the equipment operational.

The men and Amanda, all own or lease their own land. They share labor and machinery, splitting input costs and income according to the percentages of ownership.

With the family all working fulltime off the farm, they are realistic about getting farm work done. “If anyone puts pressure on anyone, it’s themselves,” explains Landon.

“We approach it with the mindset that we all know we have other responsibilities.

Sometimes, the combine will have to sit in the

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continue to enjoy the time spent together working on the farm.

“The nephews love coming out here and experiencing the farm,” Kaitlyn says.

Darcie adds. “When Rob takes the kids out in the combine or we drive around the farm, it’s fun to see the farm through their eyes.”

To view more photos of the Lee family, visit www.sdfu.org. by Lura Roti, for SDFU

“The farm is part of my dad. The two cannot be separated.”

— Amanda McMillan

UNION FARMER

WWW.SDFU.ORG

UNION FARMER Family Farmers, Ranchers Unhappy with Unnecessary Delay to Farmer Fair Practices Rules, NFU Says

F

urther delaying a much-anticipated and necessary set of protections for family farmers and ranchers, the U.S. Department of Agriculture (USDA) today pushed back the effective date and comment periods for the three Farmer Fair Practices Rules.

National Farmers Union (NFU) President Roger Johnson released the following statement in response to the announcement: “Family farmers and ranchers have been waiting on the protections provided by the Farmer Fair Practices Rules for far too long, enduring heavily concentrated markets and the unfair practices associated with lack of competition. After having been delayed

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and obstructed for the past seven years, it’s time to end the unnecessary delays to the Farmer Fair Practices Rules and allow these basic protections to be finalized.

“Despite the contention of some who have consistently opposed the increased transparency and basic protections these rules offer, the Farmer Fair Practices Rules are not some ‘midnight rule’ of the Obama Administration. They are the culmination of nearly a decade of work, having been provided for in the 2008 Farm Bill and undergone the full regulatory process.

The USDA went to extensive lengths to ensure public comment was considered and Congress’s intent was realized, only

UNION FARMER

to be blocked by riders stuck on appropriations bills in the middle of the night.

“Now that the USDA has been allowed to finalize this basic, yet vitally important, set of protections, NFU is calling on the Trump Administration to stand up for family farmers, ranchers and rural Americans by finalizing the Farmer Fair Practices Rules. We recognize that the administration wishes to review all rules that are in the process of being implemented, and we urge the administration to expeditiously complete that review process and to implement these rules as quickly as possible.”

Courtesy of NFU

MARCH 2017

15

UNION FARMER Roger Johnson

National Farmers Union President

T

he weeks leading up to and following Donald Trump’s inauguration were eventful, both for the public at large and for the agricultural community. Just before inauguration, then-President-elect Trump met with executives from German agricultural input company Bayer AG, committing the German agricultural input company to investing $8 billion research and development should the company be permitted to acquire competitor Monsanto Co. Two days later, Donald Trump announced Sonny Perdue as his nominee for U.S. Secretary of Agriculture. Just days after his inauguration, President Trump rolled out a number of executive orders that will influence the agricultural sector, including a decision to withdraw from the Trans-Pacific Partnership (TPP) trade agreement.

NFU CALLS FOR RENEWED TRADE AGENDA The U.S. Commerce Department announced that the U.S. trade deficit grew to $502.3 billion in 2016, marking its highest level in four years. Among the United States’ largest trading partners – China, Canada and Mexico – annual shifts in trade balances varied. While the national deficit with China decreased 5.5 percent, the deficit with Mexico rose 4.2 percent. Overall, the United States observed a 0.4 percent increase over last year’s deficit.

Last year’s substantial trade deficit is a symptom of a long-standing, deeply flawed trade agenda. American trade negotiators have consistently prioritized free trade over fair trade at the expense of family farmers, ranchers and rural communities, and the U.S. economy.

The United States is long overdue for a renewed trade agenda that considers the needs of these stakeholders. NFU is urging the Trump administration to address the trade deficit, expand agricultural trade surplus and protect U.S. sovereignty, while maintaining positive relationships with our trading partners.

FARMER FAIR PRACTICES RULES DELAYED In December, the U.S. Department of Agriculture (USDA) released the long-delayed Farmer Fair Practices Rules, which includes an

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interim final rule that gives producers protection against unfair or discriminatory contract practices and two proposed rules that provide oversight for pricing and payment practices. These rules are intended to offer basic and necessary protections to family farmers and ranchers who have endured heavily concentrated markets and unfair practices associated with lack of competition.

However, in March, USDA delayed the rules further, pushing back the effective date and comment periods for all three rules.

Some groups who oppose the rules have mischaracterized them as a "midnight rule" of the Obama administration. In fact, they are the culmination of nearly a decade of work, having been provided for in the 2008 Farm Bill and undergone the full regulatory process.

The USDA went to extensive lengths to ensure public comment was considered and Congress's intent was realized, only to be blocked by Congressional riders stuck on appropriations bills in the middle of the night.

Though NFU was dismayed with the news, we understand that this is common during an administration change. That being said, we are pressing the USDA to review and finalize these rules as quickly as possible.

PRESIDENT TRUMP WITHDRAWS FROM TPP In his first week in office, President Trump wasted no time implementing changes in U.S. trade policy, formally withdrawing the United States from the Trans-Pacific Partnership (TPP) trade agreement.

NFU, a staunch opponent of the agreement, expressed optimism that the administration is moving toward fairer trade policies that prioritize U.S. sovereignty and the needs of family farmers, ranchers and rural communities.

President Trump later announced his intention to renegotiate the North American Free Trade Agreement (NAFTA). NFU hopes these negotiations will protect jobs, cut the trade deficit and raise American wages.

Because the livelihoods of American farmers and ranchers rely on healthy trade relationships, the organization is urging the Trump administration to deal tactfully and respectfully with other countries, so as to avoid precipitating an international trade war.

UNION FARMER

SONNY PERDUE NOMINATION TO AGRICULTURE SECRETARY One day before inauguration, President Trump nominated former Georgia Governor Sonny Perdue to be the U.S. Agriculture Secretary. Although farmers and ranchers were concerned with the decision’s delay, many are pleased about the nominee.

NFU conveyed optimism for the proposed pick to head the U.S. Department of Agriculture. The organization hopes he will create and defend a strong farm safety net and provide meaningful farm policy solutions for producers, particularly dairy farmers and cotton growers, in the next Farm Bill.

Perdue’s confirmation hearing is expected to occur late March, although the exact date is yet unknown. Because work on the upcoming Farm Bill will soon be underway, it is important for Sonny Perdue to be confirmed as soon as possible.

TRUMP TRANSITION TEAM DEAL WITH BAYER The week before inauguration, Donald Trump’s transition team announced that it had struck a deal with Bayer AG, committing the German agricultural input company to investing $8 billion toward research and development should the company be permitted to acquire competitor Monsanto Co. NFU was displeased with this news, calling the deal “deeply disturbing,” as it indicated President Trump’s probable intention to approve the Bayer-Monsanto acquisition. To compound the agricultural community’s concern, this deal was reached several days before Trump announced his nomination for Secretary of Agriculture. Some fear this foreshadows the new administration’s future prioritization of large agribusiness over the family farmers and ranchers who feed the United States.

Corporate consolidation does not benefit family farmers and rural America; indeed, it leads to less competition and choice in the marketplace, less innovation and higher input costs for family farmers and ranchers.

Courtesy of NFU. Current as of Feb. 15.

WWW.SDFU.ORG

UNION FARMER Secretary of State & PUC Commissioner Meet with State Board, County Presidents and SDFU Staff During Annual State Advisory Council Meeting Feb. 6

South Dakota

UNION FARMER

A PUBLICATION OF SOUTH DAKOTA FARMERS UNION

South Dakota Union Farmer, ISSN 0745-8797, publishes 10 times per calendar year, with issues printed in January, February, March, April, May/June, July/August, September, October, November and December. Periodical postage paid at Madison, S.D. POSTMASTER: Address changes to: SDFU, PO Box 1388, Huron, S.D. 57350-1388

Contact SDFU • 605.352.6761 1410 Dakota Avenue South, PO Box 1388, Huron, SD 57350 www.sdfu.org sdfu@sdfu.org

SDFU State Office Staff Karla Hofhenke.......ext. 114 Executive Director Huron

S.D. Farmers Union President Doug Sombke discusses policy with PUC Commissioner Chris Nelson.

S

ecretary of State Shantel Krebs and PUC Commissioner Chris Nelson sat down with SDFU State Board of Directors, county presidents and state staff during the Annual State Advisory Council meeting held in conjunction with the organizations’ annual Legislative Day, Feb. 6.

“This was a valuable opportunity for everyone,” explains Wayne Soren, SDFU Vice President. “Anytime you can visit with top government officials, one-on-one to convey concerns or support – it’s a good meeting.”

Topics of the meeting’s discussion ranged from Senate Bill 71, which would expand broadband access to rural areas and Senate Bill 21, which is a bill designed to streamline the process for claims against grain warehouses; to Senate Bill 53, which would enhance campaign f i n a n c e regulations, and Senate Bill 54, which would Shantel Krebs create an ethics commission in the state to oversee campaign finance.

“This was a great opportunity for our state and county leadership to understand

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what these bills are designed to do, discuss how they fit with our policy and what the grassroots efforts need to be moving forward,” says Doug Sombke, SDFU President.

Gail Temple, Clark County President and District 3 Board Member agrees. “The more information we have the better decisions we can make and the more we can lobby for what we as Farmers Union members feel is right,” says the Clark farmer, who hosted a cracker barrel-style meeting Feb. 20, to discuss what she learned with Clark County Farmers Union members. “Communication is so important. The Advisory Meeting is a great opportunity for open communication between the board of directors, state staff and county presidents, how we communicate with our members at the local level.”

Coordinating the Advisory Meeting with Legislative Day was an efficient use of time, says DuWayne Bosse, Marshall County President, co-owner and operator of Bolt Marketing LLS and a Britton farmer. “Being here for the State Legislature is as important as it gets. If we’re not out here, they (legislators) don’t know our opinion unless we tell them.”

If you have any questions relating to the 2017 legislative session please reach out to Matt Sibley, SDFU Legislative Specialist, at msibley@sdfu.org.

UNION FARMER

Matt Sibley .............ext. 122 Legislative Specialist Huron

Luanne Thompson.......ext. 111 Administrative Assistant Virgil

Pam Evenson ..........ext. 116 Membership Specialist Doland

Rachel Haigh-Blume ....ext. 125 Education Director Tulare

Kecia Beranek.........ext. 113 Communications Specialist Miller

Kayla Foreman ............ext. 118 Controller Miller

SDFU Board of Directors Doug Sombke.........President Groton Wayne Soren..Vice President Lake Preston Terry Sestak..............District I Tabor Jim Wahle ................District II Salem Gail Temple ............District III Clark

Contact NFU

Joel Keierleber .......District IV Colome Dallis Basel ..............District V Union Center Lynn Frey................District VI Lemmon Chad Johnson .......District VII Groton

National Farmers Union 20 F Street NW Suite 300 Washington, DC 20001

Roger Johnson, President ~ Donn Teske, Vice President Doug Peterson, Secretary ~ John Hansen, Treasurer 202.554.1600 www.nfu.org

The South Dakota Union Farmer is published 10 times per calendar year.

Karla Hofhenke, Publisher Lura Roti, Editor ~ Wendy Sweeter, Copy Editor Tri-State Graphics, Layout and Design

All information for publication must be submitted by the 15th of the month. You may submit items by mail to the State Office, P.O. Box 1388, Huron, SD 57350 or email items to: sdfu@sdfu.org

MARCH 2017

17

UNION FARMER From the President....

Our State Lives and Dies by Family Farmers and When They Struggle so Does South Dakota

R

ecently legislative leadership invited S.D. Farmers Union and others to discuss funding possibilities of South Dakota Animal Diagnostic and Research Lab on the campus of South Dakota State University in Brookings. We were informed that state revenues will be substantially lower than anticipated — to the tune of $25 million less — making funding of this new lab an even bigger challenge.

It’s no coincidence revenue to our state is down. Agriculture is South Dakota’s No. 1 economic engine and this engine is experiencing prices below cost of production across all sectors.

State revenue is down for a couple reasons – property taxes and sales taxes as they relate to agriculture. When agriculture suffers, so do these two revenue streams.

Since South Dakota government relies on agriculture so heavily, our legislators should do everything they can to keep family farmers vibrant and profitable.

Family farmers create what I like to refer to as “New Wealth.” What is New Wealth? New Wealth is created on American farms every day. When a farmer plants a kernel of corn in the spring, it grows into a cob of 800-plus kernels in the fall. The corn harvested each fall never existed before.

In a like manner, New Wealth is created each calving season, in every farrowing crate, on every dairy at milking and every time a hen lays a new egg – understand where I’m going with this now?

Where does New Wealth come from? New Wealth is derived from the raw materials of the earth-based industries of agriculture which have the ability to renew, create and sustain themselves. However, these natural and renewable resources must be nurtured and fairly compensated if the New Wealth they create is to positively impact our economy.

Why does our economy need it? We need it because TRUE, economic growth is earned not borrowed.

It grows from the bottom up. It doesn’t trickle from the top down. When New Wealth enters the economy, it begins to multiply. It advances all, not just some.

Economists place this agricultural multiplier at 7 based on number of times it circulates within the economy from farm to consumer. Because the commodity or New Wealth exists, it has needs to be serviced. It creates other jobs and service/businesses along the way.

All businesses that handle agriculture commodities factor in a cost-plus-profit and pass it on. All of them, that is, except the farmer.

Like a foundation is to a building, agriculture is the base of our economy. The economy grows, expands and builds on its strength as the New Wealth it provides.

We undermine and weaken the agriculture base when we fail to safeguard its integrity through cost of production-plus-profit prices to the farmers who produce the New Wealth commodities. By dismissing agriculture’s significance and ignoring its need, the entire structure of our state and national economy is put at risk and begins to crumble — just as it is doing now.

In addition, as unacknowledged and equally vital resources – the next generation of young American farmers. These young producers who are our future, are an increasingly vulnerable group who is being lost because we have perpetuated an agricultural sector of high risk and low economic return.

A little history Until 1952, when the Steagel amendment was allowed to lapse, the farmers’ cost of production-plus-profit was legally protected. The level of farm prices was set to return to the farmer the same purchasing power that he averaged during a chosen period.

Originally, this was the five years of farm prosperity leading up to World War I. The term for this was parity. The USDA calculates this figure every month; most farm commodities are priced at 15-38 percent of their full parity price.

When the Steagel amendment lapsed in Congress, the farmer was on his own to protect and set his price. Processors and multi-national corporations advocated for this change so they could get raw commodities at ever-lower levels.

Lax regulations of markets led to speculation and price manipulation. Failure of anti-trust oversight led to conglomerates with unequal pricing clout. These factors led to commodity prices well below the cost incurred to produce them.

The promise was cheap food for consumers, but the reality was cheap prices for farmers.

Trickle-down economics accelerated the process as processors and multi-national corporations made higher profits to pocket at the top by not paying farmers their cost of production at the bottom. Along came farm bill after farm bill with subsidies attempting to bridge the gap to keep farmers planting and consumers eating.

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MARCH 2017

Who benefits from farmers getting their cost of production? The entire nation that’s who.

Paying family farmers their cost of production Doug Sombke plus a profit is not simply an issue of fairness. It’s SDFU President also necessary for New Wealth to work. When a farm commodity enters the economy below cost, it infuses new DEBT into the system instead of New Wealth. We end up mired in debt, losing jobs and wasting our earthderived potential.

Poor choices cause this, proper choices can fix it.

Consider the annual impact of just three of our nation’s commodities.

Each year we produce 15.15 billion bushels of corn, 4 billion bushels of soybeans and 212.5 billion pounds of milk. The National Agriculture Statistics Service-U.S. Department of Agriculture (NASS/USDA) survey for the year-end of 2016 reveals the following: If you take 100 percent parity, minus price received, you get disparity in just these three commodities. Multiply those by their annual production and you arrive at the New Wealth denied to our rural and national economy: 100% Commodity Avg. cash New Wealth 2016 New Wealth Parity Price price received price prod. denied $12.91/bu corn $3.47/bu $9.44/bu.

15.15B/bu $143B $31.10/bu $51.64/cwt.

soybeans

$10.25/bu

$20.85/bu

4 B/bu

milk

$16.24/cwt.

$35.40/cwt.

212.5

$83.4B

$75.4B $301.8B Added together, just these three commodities America was denied $301.8 BILLION of gross or New Wealth dollars due to underpayment at the farm gate.

When you factor in economic multiplier of seven, the $301.8 billion becomes $2.1 trillion.

How would South Dakota’s budget look with South Dakota’s share?

Let’s see; according to quick stats at USDA-NASS South Dakota produced 825,930,000 bushels of corn last year times New Wealth price of $9.44 per bushel that equals $7.8 billion New Wealth denied just for corn in 2016.

South Dakota produced 255,915,000 bushels of soybeans last year, times New Wealth price of $20.85, that equals $5.336 billion New Wealth denied just for soybeans in 2016.

South Dakota produced 212 million pounds of milk last year, times New Wealth price of $35.40 per hundredweight that equals $75 million New Wealth denied just for milk in 2016.

Add just these three commodities together and South Dakota was denied $13.2 billion in New Wealth to our state.

Remember, these crops were produced, but not fully paid for at the farm gate.

The commodities generated production costs that needed to be repaid. The consumer paid adequately a retail to compensate the farmer fairly, but he was never fully paid.

At one time, the farmer received 50 cents of the retail dollar. Today, he receives less than 18 cents. When the farmer receives less than cost-plus-profit, he sends debt into the economy instead of the New Wealth generated on his farm.

I want to personally thank South Dakota legislative leaders for pursuing the building of a much-needed new animal lab in Brookings. And, for presenting the $25 million shortfall in revenue expected to be generated for the states budget. In doing so, they pointed out the obvious. Our state lives and dies by family farmers and when they struggle so does South Dakota.

So, let’s fix it! Let’s fix it at the state level and at the national level. In the next farm bill let’s allow family farmers to make a living on the land — with a return on their investment.

The numbers don’t lie folks. They are as plain as the nose on your face. We fix what is wrong in rural America, we fix the country as a whole.

God bless all you do!

Doug Sombke South Dakota Farmers Union President

UNION FARMER

*all statistics came from; quickstats.nass.usda.gov

WWW.SDFU.ORG

UNION FARMER MEMBERSHIP NEWS:

Are you celebrating a life event or honoring the life of a Farmers Union member?

We’d like to share the news. Please send photos and membership updates, anniversaries, awards, birthdays, birth announcements, obituaries and other updates to SDFU Executive Director, Karla Hofhenke, PO Box 1388, Huron, SD 57350 or karla@sdfu.org. The date we receive the information will determine in which Union Farmer the information will run.

Tammy Basel and Gary Sharp named to Cattlemen’s Beef Promotion & Research Board Two S.D. Farmers Union members who raise cattle, Tammy Basel, Union Center, and Gary Sharp, Bath, have new leadership roles with the Cattlemen's Beef Promotion and Research Board (CBB).

The CBB oversees the collection of $1per-head on all cattle sold in the U.S. and $1-per-head-equivalent on imported cattle, beef and beef products. The CBB consists of 100 members appointed by the Secretary of Agriculture.

DEPARTINGS George Gittings, 72, of Philip, passed away Dec. 25, 2016 during the Christmas blizzard. George was actively involved with S.D. Farmers Union and Haakon County president for 30 years.

He is survived by his wife, Sandee, and children, Robin and Roxie, three grandchildren, four great-grandchildren.

Mary Baker, 69, of New Underwood passed away Feb. 6, 2017. She was survived by her husband, Raymond and children, Tune in to the S.D. Farmers Union Radio Hour the Second Tuesday of Every Month at 10 a.m. on KELO RADIO 1320 AM or 107.9 FM or stream the show anytime at sdfu.org/news.

TUNE IN!

COOK’S CORNER

Cream Cheese Cookies

By Kathy Wahle ~ Salem, S.D. ~ Lifetime Member

3 oz. cream cheese 1 c. shortening 1 c. sugar 1 egg

½ tsp. ¾ tsp. ½ tsp.

2 ½ c.

vanilla salt baking soda flour

Preheat oven to 375 degrees F. Cream shortening and cream cheese until fluffy. Add sugar and beat until smooth. Add egg and vanilla. Mix well. Add dry ingredients. Mix thoroughly.

Roll into balls, flatten with fork tines on ungreased sheet.

Sprinkle with decorating sugar if desired. Bake for 10 to 12 minutes until slightly brown. Makes 4 dozen. Note: If using a cookie press, you will probably need to chill the dough.

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UNION FARMER

Roxana (Dana) Thompson and Lawanza (Brad) Montague, and Joseph Baker from New Underwood; Cody (Lynn) Baker of Rapid City, Tonya Baker, Union Center, and her eight grandchildren. Her daughter, Lawanza is a CSR with Farmers Union Service Association through the Dan Lewis Agency.

Viola Thompson, 92, of Wessington Springs, passed away Feb. 17th at the Madison Regional Health System after a courageous battle with cancer. She was the mother-in-law of Luanne Thompson, SDFU Administrative Assistant.

SDFU CLIP AND SAVE CALENDAR MARCH 3-5 National Women’s Conference, San Diego, CA 5-8 National Convention, San Diego, CA 10 Lemmon Farm Show, Lemmon 14 KELO AM Radio Show, Sioux Falls 18 District II Meeting, Wessington Springs 20-21 REAL Session 3, Sioux Falls 27 S.D. Legislative Session Ends, Pierre 29 Jr. REAL, Kimball 30 Jr. REAL, Freeman APRIL 3 Jr. REAL, Mobridge 3 District III meeting, Watertown 11 KELO AM Radio Show, Sioux Falls 14 State Office Closed MAY 9 KELO AM Radio Show, Sioux Falls 29 State Office Closed

MARCH 2017

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Aberdeen Aberdeen Bison Bison Britton Brookings Brookings Brookings Buffalo Clark Doland Doland Faulkton Huron Irene Irene Kadoka Lemmon Lemmon Marion

Darrel Kessler J.R. Johnson Alan Voller Karen Voller Tom Farber Larry Sutton Beth Reams Heidi Fields Jim Erk Lon Reidburn Bonnie Wagner Mark Rozell Jason Lee Blaine Anderson Brendon Hansen Brian Hansen Donna Enders Brad Derschan Carrie Derschan Kevin Albrecht

229-3945 725-3003 244-7431 244-7431 448-5150 692-6735 690-3018 881-2830 375-3311 532-3299 635-6511 635-6511 598-6570 352-2130 263-2121 263-3342 837-2144 374-3462 374-3462 941-0650

Menno Mitchell Mitchell Mitchell Mitchell Piedmont Pierre Rapid City Rapid City Rapid City Sioux Falls Sisseton Spearfish Sturgis Watertown Webster Webster Winner Yankton

Brendon Hansen Richard Hofer Nathan Hofer Andrew Mefferd Jessica Mefferd Ce Faulkner Gary Ray Black Hills Agency Kasey Keller Lewis Agency Jeff Nord Erica Steiner Spearfish Agency Scott Sabers Todd Nichols Debbie Baumgarn Larry Baumgarn Jeremy Clay James Murphy

387-5555 996-9651 996-9651 222-7979 290-3852 737-0463 224-4123 342-5555 343-4213 342-3585 338-5302 698-7316 642-8870 347-4507 886-9683 345-2640 345-2640 842-1556 664-2121